Need legal provisions to have superintendence and control over NCLT, says appellate tribunal NCLAT

By LE Desk

New Delhi, March 22: The National Company Law Appellate Tribunal (NCLAT) has said that there is a need to introduce a provision granting it supervisory power over the NCLTs across the country.

Due to lack of such powers under the present laws, several people who are aggrieved by the National Company Law Tribunal (NCLT) are compelled to approach it by filing an appeal before it.

The appellate tribunal observation came while passing an order passed over a petition filed by the resolution professional (RP) of International Recreation and Amusement, who was aggrieved of frequent adjournments being granted by the NCLT and re-notifying the matter time and again, The Economic Times reported.

According to RP, a resolution plan is pending approval before the Delhi bench of NCLT since 2019 and the matter has been adjourned as many as 18 times.

“This is not the first case of such nature,” said a two-member NCLAT bench headed by Acting Chairperson Justice B L Bhat.

The appellate tribunal further said: “There is a need to introduce a provision in the legal framework to vest power of superintendence and control qua National Company Law Tribunals in this Appellate Tribunal.

“Due to lack of supervisory jurisdiction many aggrieved persons are compelled to adopt the route of filing the appeal though there is no order on merit,” it said.

NCLAT has directed NCLT to “take a call and pass an order on merit in regard to the Resolution Plan pending consideration before it within two weeks”.

It has asked to send a copy of this order to the NCLT.

NCLT had initiated an insolvency process against International Recreation and Amusement, which had operated India’s first Amusement Park “Appu Ghar”, which was triggered on August 3, 2018.

https://economictimes.indiatimes.com/news/economy/policy/need-legal-provisions-to-have-superintendence-and-control-over-nclt-says-appellate-tribunal-nclat/articleshow/81635239.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst